Road Pricing Strategy in Singapore BAQ 2006 13–15 Dec 06, Yogyakarta, Indonesia Road Pricing Strategy in Singapore We will cover 2 parts in this presentation. The 1st is on our vision for Singapore’s land transport, and the 2nd part will cover the specific initiatives in FY06 to achieve our vision. Loh Chow Kuang Deputy Director, LTA Academy Land Transport Authority, Singapore Email: chow_kuang_loh@lta.gov.sg Website: www.lta.gov.sg

Overview Context Overall Transport Strategies Manual Road Pricing Electronic Road Pricing Current Achievements Conclusion We will cover 2 parts in this presentation. The 1st is on our vision for Singapore’s land transport, and the 2nd part will cover the specific initiatives in FY06 to achieve our vision.

SINGAPORE Some facts and figures We are a small and densely populated country.

(LTA) One-Stop National Agency that: Policy Planning Development Formulates policies and strategies; Plans road & rapid transit networks to meet future travel demand; Develops road & rail infrastructure and manages the design & construction of projects; Manages traffic and maintains road structures & facilities; and Regulates public transport services and vehicles. ~ 3500 staff (incl 1200 professionals) Planning Development LTA was formed on 1 Sept 1995, after merging 4 organisations responsible for the development of road, rail, transport policies and regulatory functions. With the vision of developing a world class land transport system. Management Road Rail Vehicle Bus Taxi

Road/Private Transport Road Network - 3,200 km Expressway Network - 150 km Vehicle Population - 755,000 Car Population - 438,000 (58%) Cars/1000 residents - 117 Over the last forty years, Singapore has experienced rapid growth. Our transport network has developed comprehensively to meet travel demands. Today, we have 3100 km of road network, including 150 km of Expressway. There are 720,000 vehicles on the road. Cars constitutes 57% of the total vehicle population.

Growing Travel Demand We have to meet the rapid increase in travel demand within the small land area of ours. The number of trips per day grew by 5 million between 1980 and 2000. We expect the total number of daily trips to rise to at least 10 million by Year 2010. Our challenge is to develop sustainable strategies to meet the rising travel needs. Considering that …

Sustainable, Integrated Approach Landuse Long-term Urban Planning, Integration of Developments Optimise Road Network Transport Integrated Landuse/Transport Planning Vehicle Ownership Restraint Develop/Expand Rapid Transit Vehicle Usage Restraint Improve Bus Services Traffic Management/ITS Promote Public Transport Integrate Bus/Rail Network & Ticketing Enhance Safety & Accessibility Enhance Commuter Accessibility Judiciously Expand Road Network Conducive Financing and Industry Framework Environment Emission Standards, Cleaner Fuels, Enforcement, Green Vehicles, Education

Integrated Landuse/Transport Planning Planning for transport goes beyond looking at transport issues alone. It must be integrated with the larger subject of overall land use planning. Concept Plan is a long term strategic plan which guides the overall physical development of Singapore. LTA works closely with other land use government agencies in developing the Concept Plan. Transport plans, are part of these strategic plans These plans are reviewed periodically, every 10 yrs, to take into account population and employment changes which translate into travel demand and infrastructure requirements. The last concept plan was done in 2001.

Develop High-Quality Public Transport We have a variety of public transport modes including an islandwide Mass Rapid Transit (MRT) system covering 109 km. It is complemented by a comprehensive bus network serving 260 routes. There are presently 2 LRT lines with 19 km of route length providing as feeder systems to the MRT. For door-to-door convenience, there are 20,000 taxis serving the island.

Managing Demand for Road Usage Vehicle Ownership Control Road Usage Restraint High upfront cost Recurrent usage cost Demand management comprises of 2 components - Ownership control - Usage control Ownership control was instituted in 1990 with the implementation of a Vehicle Quota System (VQS) that allows the government to have absolute control over vehicle growth. - Custom Duty (20%) - Additional Registration Fee (110%) - COE Premium Road Pricing Petrol Duty

World’s First Road Pricing System In terms of usage restraint, we started as early as 1975 with a manual, paper-based system, to regulate vehicle entry into the city centre, called the Area Licensing Scheme. Under this scheme, all vehicles entering the city centre during the hours of restriction had to display a paper licence affixed to the windscreen. Enforcement was by personnel at the gantry positions.

Road Pricing in Singapore - Key Policy Issues Strong Government commitment Congestion management tool Non-revenue generating No privacy intrusion Transparent and trustworthy Fair and equitable Improve public transport Provide alternatives Minimise impact on businesses Education/Publicity Legislation and enforcement Prevention of violations and frauds

World’s First Manual Road Pricing Area Licensing Scheme (ALS) for CBD or Restricted Zone (RZ) started in June 1975 Licence fee: $3/day or $60/month Carpools, taxis, motorcycles, buses and commercial vehicles were initially exempted Scheme extended to Expressways in May 1990. High manpower needs, limitation in varying road pricing charges, inconvenient to motorists. Before ERP was implemented there was Manual Road Pricing. MRP is a system where motorists had to purchase coupons to enter the CBD or pass thro certain E-ways. They could purchase coupons on a monthly or daily basis. Disadvantages:- Enforcement was done by an Officer stationed at the Gantry to note down vehicles that did not display the coupons. Imagine the poor Officer's working condition. Inconvenient for motorists as they had to purchase the coupons only at designated booths. The price was fixed, ie a motorist that decide to enter the RZ at off peak hours had to pay the same amount. There was a need to adopt a better system - hence ERP.

Word’s First ERP System

ERP Coverage 1st phase automated the ALS. Pricing has since been extended to other congested roads.

In-Vehicle Unit (IU) Permanent IUs (Powered by vehicle’s battery) Temporary IUs (Powered by replaceable battery) Different types of IUs are fitted on vehicles to enable road pricing charge to vary by vehicle type. These are 6 types of IU shown here. Generally the one on the right with the cover is for motorcycle. But vehicle that has no roofing like military jeep will used this type of IU but need to be modified internally to have the vehicle charge class to be the same as passenger car. The second IU is for passenger cars and light goods vehicle. The third IU is for taxis. If you notice, the Taxi IU has dual display. The bottom display is to show the CashCard balance and the upper display is to show the passenger the amount to be paid after passing through the ERP gantry. The fourth and fifth IU are meant for heavy goods vehicle and buses. The last IU is an exempted IU for emergency vehicles like Ambulances and Fire Engines. There are 2 more types of IU that are not shown here. They are the temporary IU for foreign vehicles and motorcycles that enter Singapore and need to pass the ERP gantry for a period of time.

ERP CONTROL CENTRE 24-hour operations to ensure all the ERP gantries are working properly. Monitoring of all equipment. Processing of financial transactions. Processing of violation images.

- Policy Changes and Publicity ERP Implementation - Policy Changes and Publicity Free fitting of In-vehicle Units Strengthen enforcement powers Vehicle tax incentives: Lower vehicle ownership taxes and road tax Road tax rebates over 5 years Manage impact on businesses Phasing-in of ERP rates for taxis (over 3 years) & commercial vehicles (over 4 years) Publicity Special ERP hot-line Brochures sent to all vehicle owners Wide media coverage, etc

Foreign Vehicles Rent - Temporary IUs for short-term visitors $122.30 refundable deposit $5.05 rental fee per day (min of 2 days) valid for two weeks Buy - Permanent IUs for sale to frequent visitors $152.90 inclusive of installation Day Scheme Flat rate of S$5 per day. Fee is added to the Vehicle Entry Permit/Toll charges.

Violations and Errors Violations (~ 0.3% per day) No IUs - Fine of S$70 No CashCards or Insufficient cash value in CashCard - Administrative Charge of S$8-$10 plus ERP charge Errors (~ 0.05% per day) Motorists asked to have IUs and CashCards checked

ERP Rates Peg to PCU (Pax Car Unit) Set based on traffic conditions Taxi -1 Buses – 1.5 to 2 Light Goods Vehicle – 1 Heavy Goods Vehicle – 1.5 to 2 M/cycle – 0.5 Set based on traffic conditions Vary by time and location Starting from S$0.50 per PCU (max $3.50/PCU) Review/Revise quarterly to maintain an optimal speed range Only emergency vehicles are exempted

Review of ERP Rates To ensure use of road space is optimised Review at 3-monthly intervals 65 kph 45 kph Increase Decrease Expressways 30 kph 20 kph Increase Decrease CBD/ Other Roads

Computer Transport Modelling Provides travel demand forecasts and traffic simulation for infrastructure planning, policy studies and traffic management schemes (eg ERP)

Benefits of ERP Fair: Convenient: Reliable: Effective: pay-as-you-use (charges are levied on a per-pass basis) those who contribute more to the congestion pay more those who use the roads less frequently or who travel during non-ERP hours will pay less or not need to pay at all those who choose to pay will enjoy a smoother ride no privacy intrusion Convenient: rates are automatically deducted from the cashcard in each vehicle Reliable: fully automated system, no human errors Effective: motorists more aware of the true cost of driving motorists are encouraged to decide/choose: whether to drive, when to drive and where to drive different route, mode of transport, time of travel, or not travel at all. optimise road usage and manage congestion

Effect of ALS / ERP Index

Average speed within city centre during AM Peak Smooth Flowing Roads > 95% of expressways and major arterial roads during peaks are congestion-free Source: World Cities Research, 2005 Average speed within city centre during AM Peak

Sharing with the World Delegates from some 50 countries worldwide have visited LTA > 70 delegations visited LTA in 2005

Sharing with the World A dedicated Division of Land Transport Authority (LTA) A one-stop focal point for governments, organisations and professionals around the world to: tap Singapore’s know-how and exchange best practices in land transport management and development Key training areas: Policy and Planning Public Transport Management Traffic and Road Management Rail Transit Development & Systems Vehicle Licensing and Standards Delivered by Senior LTA Staff who are the Domain Experts www.LTAacademy.gov.sg

Conclusion Road Pricing/ERP is effective in managing congestion/road usage reduces sharp peak traffic volumes solves congestion in the controlled area, but may transfer congestion elsewhere Road Pricing/ERP is not a revenue generating measure in Singapore but for congestion management Road pricing scheme has to be implemented as part of a total package Need good alternatives for those affected Good public transport is important Direct debit from the Cashcard (stored-value smartcard) addresses privacy concerns

Singapore (LTA) Thank You